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Electromed reaches settlement with CMS on denied Medicare claims

Electromed Inc. reached a settlement with Centers for Medicare and Medicaid Services, or CMS, regarding 700 Medicare fee-for-service claims.

The claims were submitted by the medical devices company between 2012 through 2015, and amount to approximately $2.9 million.

Electromed had previously requested an administrative law judge hearing for reconsidering the denied claims, the company said in an SEC filing June 5.

Under the settlement agreement, Electromed expects CMS to pay about $1.1 million to the company. The company, in exchange, will withdraw its request for the hearing and stop further appeal of the denial of claims.

Of the estimated $1.1 million the federal agency is to pay Electromed, $900,000 will be recognized as revenue during Electromed's fiscal quarter ended June 30.